FASB Codification Guide-2

Lesson 4 understanding the scope of guidance 35

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Unformatted text preview: ich items (entities, transactions, events , etc.) the guidance applies to and which items it does not apply to. Otherwise, you risk misapplying the guidance. Like Eric in the scenario above, you will need certain knowledge and skills to quickly obtain an accurate understanding of the scope of guidance that you find in the Codification. This lesson will help you learn to: Recognize where scope information is located within the Codification Navigate among Sections of a Subtopic that contain scope information Comprehend the scope information that you find. Lesson 4: Understanding the Scope of Guidance 35 RECOGNIZING WHERE SCOPE INFORMATION IS LOCATED The scope of guidance in the Codification is defined by scope declarations. A scope declaration usually describes the items (entities, transactions, events) that are included in the scope of the guidance with which the declaration is associated. But a scope declaration may describe items that are excluded from the scope of the guidance, either instead of or in addition to describing which items are included in the scope. Typically, a specific scope declaration is associated with all of the guidance in a specific Subtopic. For FASB guidance, such scope declarations are located in Section 15, Scope and Scope Exceptions, of the associated Subtopics. In the case of SEC guidance, such scope declarations are located in Section S15 of the associated Subtopics. Hereafter, you should assume that all references to Section 15 in this Learning Guide apply to Section S15 when SEC guidance is involved. Section 15/S15 Most Subtopics, but not all, contain a Section 15. Many Subtopics also contain a Section S15. Any scope declaration that applies broadly to all guidance in a specific Subtopic is subject to overriding exceptions. For example, for a scope declaration that is associated with all of the guidance in a specific Subtopic, there may be exceptions to that scope declaration stated at the paragraph level in one or more Sections of the Subtopic. Such exceptions are associated...
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This note was uploaded on 03/27/2014 for the course ECON 12586 taught by Professor Yorambarzel during the Fall '09 term at University of Washington.

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